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Labor Economics 6th Edition by George Borjas
Edition 6ISBN: 978-0073523200Labor Economics 6th Edition by George Borjas
Edition 6ISBN: 978-0073523200 Exercise 1
Suppose 25,000 persons become unemployed. You are given the following data about the length of unemployment spells in the economy:
where the exit rate for month t gives the fraction of unemployed persons who have been unemployed t months and who "escape" unemployment at the end of the month.
a. How many unemployment-months will the 25,000 unemployed workers experience
b. What fraction of persons who are unemployed are "long-term unemployed" in that their unemployment spells will last five or more months
c. What fraction of unemployment months can be attributed to persons who are long-term unemployed
d. What is the nature of the unemployment problem in this example: too many workers losing their jobs or too many long spells
where the exit rate for month t gives the fraction of unemployed persons who have been unemployed t months and who "escape" unemployment at the end of the month.
a. How many unemployment-months will the 25,000 unemployed workers experience
b. What fraction of persons who are unemployed are "long-term unemployed" in that their unemployment spells will last five or more months
c. What fraction of unemployment months can be attributed to persons who are long-term unemployed
d. What is the nature of the unemployment problem in this example: too many workers losing their jobs or too many long spells
Explanation
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Use table to do the calculations:
To c...
Labor Economics 6th Edition by George Borjas
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